Creating a business investment portfolio

A business investment portfolio is more than a portfolio full of stocks and bonds. A true business investment portfolio is designed to bring as much money to your company as possible by listing attainable goals and clearly defining your risks. When you start creating your business investment portfolio, you need to find out exactly how much money you can use for business investments. After you have your chunk of change ready to invest, ask yourself the following questions:

How to calculate ROI (return on investment)

Making the right decision on your return on investment (ROI) is very fundamental to making a good business decision. Whether you choose to invest in savings accounts, stocks, real estate or new business, making the best guess on a return on investment will better guide you in choosing among so many different investment options. Return on investment is one of the several approaches to building financial business wealth. Return on investment measures how effective a business uses its capital to generate profit and typically is based on the period of one year.

How can I tell if a market downturn is short or long term?

For most investors, losing their hard earned money investing in the stock market is not an option. If you simply don't have the patience and your risk tolerance is low, then certainly the stock market may not be right for you. You can consider other investment options with fewer risks at least until you've done some personal research on the whole market performance of a given company. One option for minimizing investment fears is to invest in low cost market funds and hold on to them and making a little effort in buying and selling stocks according to the fluctuation of the market. In other words, your best choice is to invest in low risk mutual funds and maintain your investment plan no matter which way the market is moving because you know that it will move in a positive direction in the long run.

Impressing angel investors...how to

How you impress angel investors for your business can be asked by many different business owners that may be looking for some extra funds. Angel investors are also known as just angel, business angel or as an informal investor in Europe. An angel investor is an affluent individual who provides capital for a business start up. The angel investors will front money to the start up business in exchange for convertible debt or ownership equity. Angel investors are increasing in number and are beginning to organize themselves into angel groups or angel networks to share research and pool their investment capital. Start up businesses will want to have an angel investor for the money that the angel investor gives to the business. How to impress those angel investors is a big question for any start up business.

How to choose business investments based on liquidity

One aspect of your investment strategy that you must take into consideration is the liquidity of particular investments. The liquidity of an investment will be absolutely central to how you can meet your financial goals for your business and to what type of business you have and what your business' financial needs are.

The liquidity of an investment describes how readily available the value of that particular investment is. For example: cash that you keep underneath your mattress is the most absolutely liquid asset that you can have. Another form of assets that is also pretty liquid is the money that you have in a checking account. That money can be accessed pretty much immediately by simply writing a check. There are other investments that are more and less liquid. For example, some stocks are much easier to liquefy so that you can get that money that you have invested pretty quickly.

There are other investments which are much, much less liquid than these easily accessed stocks. For example, long-term bonds lock your money away for a long period of time as those bonds mature. You can liquefy your bonds earlier than the agreed date, of course, but if you do so, then you will pay a penalty and you will not be able to receive the full value of your investment. As an individual, you will probably be more familiar with the idea of the not-very-liquid IRA or the 401(k).